Will Penang’s property market continue to boom?

A couple of weeks ago, the Penang state government created a stir when it said it would review the billion-ringgit Gurney Paragon project if there were “justifiable grounds”.Chief Minister Lim Guan Eng said the state government would get views from all quarters and welcomes any objection.“We will revisit the projects approved by the previous administration and if necessary, review them if these projects are adversely affecting people’s lives,” says Lim.Lim was responding to calls by the Penang Heritage Trust (PHT) and Bar Council Legal Aid Centre to review and hold an open hearing on the project.Gurney Paragon is a mixed integrated development by Hunza Properties (Penang) Sdn Bhd comprising a mall, two blocks of high-end condominiums and a heritage building spread over 4ha of freehold land on Gurney Drive fronting the sea.The land was formerly occupied by the Uplands International School.The company bought it in 2004 for RM97mil.For several years, Penang’s property market has drawn buyers from far and wide. Be it a holiday home for Malaysians or a retirement home for foreigners under Malaysia, My Second Home (MM2H), the island’s properties have exchanged hands at a premium compared with Kuala Lumpur’s prices.Read more

(The Star 5-4-2008)

Selangor to review hillslope projects

SHAH ALAM: All hillslope development projects in Selangor will be reviewed, said its Menteri Besar Tan Sri Khalid Ibrahim yesterday. Speaking to reporters after chairing the first state executive council meeting, he said exco member Ronnie Liu, who is in charge of local government, has been tasked with finding ways to resolve the problem of hillslope projects. He said Liu will meet presidents from local councils like Ampang Jaya where there are hillslope projects and advise the executive council on what measures to take on this matter. Hillslope developments have been equated with the rape of hills, and this has been a sore point as such projects continue to be done despite statements made by national leaders over the years, including prime ministers. On another matter, Khalid revealed that the state government wanted to revive the controversial Port Klang Free Trade Zone. “With RM4.5 billion invested in that project, we do not see the vibrancy and dynamism in that area. If you have that sort of real estate not being utilised, can you imagine the state not having the responsibility to take care of that area?” he asked. He believed his involvement in the privatisation of Port Klang services in 1992 as a former chairman of then Kontena Nasional Sdn Bhd will help him to carry out the task.

(The Edge 27-3-2008)

Gurney project in Penang may be reviewed

PENANG: The state government will review the billion-ringgit Gurney Paragon project if there are “justifiable grounds”. Chief Minister Lim Guan Eng said the state government would get views from all quarters and welcomes any objection. “We will revisit the projects approved by the previous administration and if necessary, review them if these projects are adversely affecting people’s lives. Raising concerns: Artist impression of Gurney Paragon, a mixed integrated development comprising a shopping mall, high-end condominiums and a heritage building.“The concerns expressed to us by NGOs have been taken into account and we want certain procedures to be complied with, as should be the way the government works,” he said after a dialogue session with members of the Free Trade Zone Penang Companies’ Association yesterday. Lim was responding to calls by the Penang Heritage Trust (PHT) and Bar Council Legal Aid Centre to review and hold an open hearing on the project. Read more

(The Star 25-3-2008)

Wireless@KL Project to start in May

The "KL Wireless Metropolitan" or "Wireless@KL" project to transform Kuala Lumpur into a "wireless city" with world-class communication channels will begin in May, city mayor Datuk Ab. Hakim Borhan said yesterday.“In line with the Wireless@KL project, a community website, KUL.COM.MY, will also be set up and updated regularly to provide the relevant information to city dwellers,” Ab.Hakim told reporters after the signing of a memorandum of agreement (MOA) on the Metropolitan Kuala Lumpur portal project between Kuala Lumpur City Hall (DBKL) and Synapse Technologies (M) Sdn Bhd.The agreement is under the initiative of the Malaysian Communications and Multimedia Commission (MCMC) on behalf of the government, which has provided a grant of RM500,000 to City Hall for the purpose.On December 17 last year, City Hall signed a memorandum of understanding on Wireless@KL with MCMC and Packet One Networks (M) Sdn Bhd to enhance broadband facilities for City Hall offices and community centres and both public and residential areas in the Klang Valley by 2010."Wireless@KL uses WiMAX technology and for the first phase of this project 1,500 Wi-Fi zones will be developed,” Ab. HAkim said. He also said the KUL.COM.MY portal will be a “one-stop source of information” on Kuala Lumpur for people in and out of the country. The information will cover social, development, economic, trade, education, entertainment, tourism and other aspects, he said.Ab. Hakim said the portal will use the “broad spectrum approach” where it will collate and upgrade information from various sources for user convenience.

(Bernama)

Are changes in store post-election?

PETALING JAYA: Is further volatility in store for the main stock index as business confidence takes a beating in view of not only a change in the makeup of the 12th Parliament but also in the legislatures of the more economically important states and in the Federal Territory? On Monday, following the general election of March 8, the KL Composite Index (KLCI) fell 123.11 points, or 9.5%, to close at 1,173.22, wiping out RM86bil, or 8.7%, from the bourse's total market capitalisation of RM984bil as at March 7. The selling also saw a temporary halt in trading mid-afternoon when the circuit breaker installed by Bursa Malaysia in March 2002 was triggered after the KLCI fell 10% from its previous close on March 7. Big-cap stocks with high foreign shareholding as well as plantation and construction stocks were among those that saw their share price fall on that day. Read more

(13-3-2008 The Star)

Millionaire Havens

Where are the country’s most expensive deals being made? The answer is literally at your feet … if you happen to live in the rich, fully developed state of Selangor. This is according to statistics gathered from the Ministry of Finance’s latest “Million Ringgit Property Deals” report covering the 2005/2006 period.Prepared by the Valuation and Property Services Department (VPSD), it found out that 812 transactions, each worth at least RM1 million, were made in the state during the period to the tune of RM2.38 billion.

Given the fact that 2,023 big-time residential, commercial, industrial, development land and agricultural deals worth RM7 billion were signed during the two years, it means Selangor was responsible for 40 per cent of the transactions by volume and 34 per cent by value.In second spot was Kuala Lumpur, with 442 deals worth RM1.97 billion, followed by Penang with 208 deals (RM897.67 million) and Johor with 163 deals (RM441.91 million).The other states that also saw million-ringgit transactions were Sabah (72 deals, RM177.19 million), Kedah (66 deals,RM304.21 million), Perak (64 deals, RM282.92 million), Negeri Sembilan (59 deals, RM109.73 million), Malacca (49 deals, RM169.35 million), Sarawak (39 deals, RM59.97 million), Pahang (26 deals, RM176.96 million), Terengganu (18 deals, RM24.19 million) and Kelantan (five deals, RM13.87 million).

(New Straits Times 26-2-2008)

Groundbreaking Incentives Put Sector On Firmer Footing

The property sector has witnessed a slew of groundbreaking developments last year, which had placed the sector on a more competitive footing going forward, especially in terms of government policies. For instance, in the residential sector, foreigners are now allowed to buy properties costing above RM250,000 without Foreign Investment Committee (FIC) approval and they benefit from the exemption of real property gains tax (RPGT). Moreover, the authorities allowed the set up of one-stop centres to streamline procedures to hasten approval process.

(4-2-2008 The Star)

Ministry may amend Act to include fire-fighting squads

KUALA LUMPUR: The Housing and Local Government Ministry is studying whether to include voluntary fire-fighting squads in the Fire Services Act, said its minister Datuk Seri Ong Ka Ting. He said the ministry intended to amend the Act so that the operations of the squads, now registered under the Registrar of Societies, could be better coordinated.

(01-02-2008 The Star)

Ong: Stricter rules make a better market

This is the view of Housing and Local Government Minister Datuk Seri Ong Ka Ting, who said "stricter rules, regulations and fines imposed under recent amendments to the Housing Development (Control and Licensing) Act has led to a better market". This now incurs a fine of up to RM20,000 and/or five years’ jail as opposed to a fine of RM5,000 and/or three years’ jail previously. Other major changes with the amendments include a fine of not more than RM10,000 for developers who omit any requirement stipulated by the Act in their Sale and Purchase Agreements (SPAs); purchasers no longer need the consent of developers for sub-sale if the purchase price has been fully settled; and separate terms and conditions for SPAs under the 10:90 mode of housing delivery.

(21-1-2008 New Straits Times)

Government targets RM1b home loans in 2008

PUTRAJAYA: The government expects local financial institutions to disburse RM1 billion in home loans this year to low-income groups in the agriculture and fisheries sectors under the guaranteed housing loan scheme (Skim Pinjaman Perumahan Berjamin). Second Finance Minister Tan Sri Nor Mohamed Yakcop said yesterday the loans, under an initial RM50 million guaranteed fund, would be disbursed by Bank Islam Malaysia Bhd (BIMB) and Bank Simpanan Nasional (BSN). Syarikat Jaminan Kredit Perumahan Bhd (SJKP), a unit of the Finance Ministry, would guarantee the industry. About 20,000 borrowers with monthly income of RM1,500 would be able to own low- and medium-cost housing, he said. He added that 1,713 applications worth RM29 million were approved over 15 days.

(16-1-2008 The Edge)

Housing Tribunal weeds out rogue developers

SUBANG JAYA: The Housing Tribunal has served as a deterrent against irresponsible developers, said Housing and Local Government Minister Datuk Seri Ong Ka Ting. He said the number of complaints lodged at the tribunal had halved from 6,524 cases in 2004 to 3,000 last year. “Of this, 6,506 cases in 2004 have been solved while last year, 2,363 cases were settled,” he said at a press conference after opening the briefing on the Housing Development (Control & Licensing) (Amendment) Act and Regulations 2007 here yesterday.

(16-1-2008 The Star)